Sumsub and Elliptic Unite to Tackle Crypto Fraud with Advanced Tools
A new partnership aims to revolutionize compliance and risk assessment in cryptocurrency.
Verification platform Sumsub has partnered with blockchain analytics pioneer Elliptic to create a unified solution for combating financial crime in the cryptocurrency space. Announced on November 26, 2024, this collaboration integrates Sumsub’s identity verification tools with Elliptic’s blockchain analytics, offering businesses a streamlined approach to crypto wallet screening, compliance, and risk assessment.
This partnership arrives amid escalating fraud in the crypto sector. According to Sumsub’s 2024 Identity Fraud Report, cryptocurrency ranks among the top five industries most affected by fraud this year, underscoring the urgency of robust security solutions.
The integration utilizes a Bring Your Own Key (BYOK) model, enabling businesses to connect their existing Elliptic subscriptions directly to Sumsub’s system while maintaining control over their encryption keys. This approach not only enhances security but also facilitates seamless access to the combined functionalities of both platforms.
One standout feature of the partnership is the automation of cryptocurrency wallet screening and real-time risk assessments. Powered by Elliptic’s extensive blockchain data, the system simplifies what has historically been a labor-intensive process, allowing businesses to focus on proactive risk management. The integration also consolidates workflows into a unified dashboard, enabling companies to oversee compliance and monitoring activities from a single interface.
The collaboration is particularly beneficial for businesses in blockchain, fintech, and payments sectors. Through the combined platform, users gain direct access to advanced blockchain analysis when investigating potentially suspicious activities, offering deeper insights into transaction histories and risk profiles.
James Smith, co-founder of Elliptic, emphasized the importance of the partnership: “This collaboration represents a significant step in empowering businesses to detect and address risks before they escalate. By combining Sumsub’s verification expertise with Elliptic’s blockchain insights, we’re creating a powerful tool for fighting financial crime in the crypto sector.”
Sumsub’s Chief Growth Officer, Ilya Brovin, highlighted the partnership’s potential to bolster compliance capabilities for virtual asset service providers (VASPs). “By integrating our platforms, we’re streamlining compliance processes while ensuring businesses remain equipped to navigate the ever-evolving regulatory landscape,” Brovin stated.
The integration’s technical features include automated workflows, real-time risk scoring, and detailed blockchain analytics. These tools provide businesses with a comprehensive view of cryptocurrency transactions, ensuring they stay ahead of potential threats while meeting regulatory demands.
The timing of this collaboration is particularly relevant given recent advancements in law enforcement tactics for addressing cryptocurrency crime. The FBI’s creation of its own crypto token for undercover investigations exemplifies the evolving nature of both crypto-related crime and the tools required to counteract it.
Sumsub’s current clients, including prominent names like Bitpanda, Wirex, and Huobi, will benefit directly from the enhanced capabilities. Additionally, the platform’s compliance features are designed to meet diverse regulatory requirements across multiple jurisdictions, making it a valuable asset for globally operating businesses.
Elliptic’s reputation as a WEF Technology Pioneer, combined with backing from major financial institutions such as J.P. Morgan and Wells Fargo Strategic Capital, adds significant credibility to the partnership. With offices in London, New York, Singapore, and Tokyo, Elliptic brings an international reach that complements Sumsub’s existing infrastructure.
As the cryptocurrency landscape continues to evolve, this partnership provides businesses with a proactive solution to navigating increasing risks and regulations. The unified platform represents a leap forward in ensuring transparency, security, and compliance for cryptocurrency transactions worldwide.
photo source / Blockonome
